Waikato has the fastest population growth in New Zealand but is geographically splintered.
Waikato has the fastest population growth in New Zealand but is geographically splintered.
Future Waikato economic development efforts may be delivered under the banner of the regional council, following the demise of the independently-led Te Waka, the fourth agency to fail.
A council-controlled organisation is one of three options to be considered by councillors on Thursday following a major regional canvasof views on what shape any future economic development push should take.
Based on the research, a council staff paper offers three options for the future delivery of economic development activities in the region. They are: the status quo with a wide range of organisations continuing to work ad hoc on regional development functions with the council (WRC) continuing funding support but with no increase in funding; an organisation operating as a council-controlled organisation (CCO); and a regional leadership partnership approach to empower economic development (like Te Waka).
The paper said a group of stakeholders had proposed a refresh of an economic development entity, through a council-controlled organisation. Te Waka founder Dallas Fisher, a prominent Waikato businessman and promoter of the region, had engaged Deloitte partner Doug Wilson and David Wilson, from Cities and Regions NZ to develop and present a CCO model to the council.
Fisher has been approached for comment. Don Good, chief executive of the energetic Waikato Chamber of Commerce, said the chamber was reserving its opinion until after the council debate on Thursday.
The council paper noted many stakeholders canvassed did not support the idea of a new regional economic development entity.
Te Waka, launched six years ago citing a determination not to fail as three others had before it, was shut down mid-year.
Observers variously blamed “protection politics” among the huge geographical region’s 11 local authorities, business apathy, splintered geographic interests and the economic crunch which forced councils to tighten spending. Others said it simply didn’t get enough money - including from its prime constituency, business. Some questioned Te Waka’s value for money.
Te Waka had three full-time staff and had been running on an annual budget of around $1 million, $750,000 of which was from the regional council. Some other councils also contributed much smaller amounts.
Te Waka closed down shortly before WRC was to make a decision under its 2024-2034 long-term plan whether to keep funding the entity, using unallocated money from the regional development fund. At the time WRC agreed the region needed “a strong collective voice” on economic development opportunities and implementation.
Former Te Waka board member, economist Cameron Bagrie says Waikato is a region with "silent not showy wealth that feels like it's stuck in third gear". Photo / Supplied
The paper, which follows councillors’ direction to staff to survey regional views in the wake of Te Waka’s closure, noted 68% of submitters to its long-term plan preferred WRC stop funding Te Waka.
Stakeholders canvassed included the business community, local councils (councillors and staff), industry groups, tourism organisations and central government representatives.
The consultation effort included more than 50 face-to-face meetings involving WRC leaders and an online survey designed to identify opportunities for regional collaboration and co-ordination.
Of the 201 online survey responses, just over half were from business, with 15% from not-for-profit groups and 9% from local government.
Asked their views on the most important economic development functions, most respondents (64%) said business growth. Investment attraction was nominated by 39%, strategy and political advocacy for regionally significant projects by 38%, and co-ordination and planning of infrastructure projects by 34%.
The paper said since Te Waka closed many organisations WRC works with had committed to working together and reconvening the Waikato Economic Development Forum, formerly Connect Waikato. A meeting of this entity is planned next month.
“However, even with the most effective network, the current problem is that there is no identifiable ‘go to’ body to consistently support cross-organisation collaboration or provide ‘the virtual front door’ for offshore or government investors expecting the region to engage as a collective,” the paper said.
Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the $26 billion dairy industry, agribusiness, exporting and the logistics sector and supply chains.
